Regular Investors Don´t Know Where To Turn!

The world is a very tough place right now for 'regular' investors. In front of me is the latest newsletter from one of the largest IFA groups in the country - a household name.

I quote: "...investors trapped between a rock and a hard place. The value of capital is being eroded by inflation, but many are afraid to seek a higher yield in the stock market in case it falls further."

"Investing in today's volatile markets is not for the fainthearted. The shares of many companies look good value, but sentiment could yet drive them lower."

The IFA issue

So what's this about really? What choices do investors have? The first huge problem is that fixed income securities (like bonds, deposit accounts and so on) are not even keeping pace with inflation; and investors have the worry of knowing that every year their capital is worth less. And the interest they receive is virtually worthless!

The second huge problem is that share values in the stock market bear little relation to underlying value any more. The shares reflect people's perception of future profit; and that only needs a scare story or a change in the economic outlook to shift dramatically.

Bottom line is this - the IFAs don't really have any productive suggestions for investment anymore!

Choose property!

Of course things would be different if IFAs considered property investment as an option. Sadly, they don't have the knowledge or the contacts to offer property as an investment choice. That's more worrying now, because buying at the bottom of the market is the big opportunity - whether in the UK or the USA.

So why exactly should investors consider property as an alternative to shares or fixed interest securities?

Four steps to investment success

Firstly, property still has a strong link between real value (as in the cost of land and bricks and mortar) and the price paid. So whilst property can (and has) gone down as well as up, the swings are far less than with shares; and the upside over a period of time far more certain.

On top of this, your investment in property can create an income yield that could be as high as 20% net pa. This is typically 5-10 times higher than your interest on cash deposits or bonds.

Thirdly, property offers the benefit of leverage, i.e.  borrowing to increase your returns.

Finally, work with Axis and you'll be buying way below market value, helping you make profit when you buy and increasing your investment returns. Same income, less cost to purchase.

Add all these four benefits together and it's a wonder that IFAs can still hold their head up and recommend shares as a serious investment!

Make your capital perform for you

Last year Barclays Capital reviewed the performance of the major asset classes over the period 2000 - 2010. These 10 years included the property crash and the banking crisis. The worst performing asset class over this 10 year period was share investment. If you held the same portfolio in 2010 that you did in 2000, you would have lost, on average, 14% of your money.

On the other hand, if you had invested the same money in property and taken advantage of 75% leverage through borrowing, you would have gained, on average, 436% on your investment.

For investors worrying about the future, our position at Axis is very clear. Property is the only serious asset class that will give the biggest certainty of strong returns and growth in the next 10 years.

The Axis way

At Axis we don't just offer ‘property.’ We offer investment property with full due diligence and at purchase prices significantly below market value. Our deals are not available on the open market and they are packaged for 'armchair' investors, who wish as little involvement as possible in the day-to-day running of their portfolios.

Whether you want to create strong income from your capital (up to 20% net pa), or the potential of exceptional capital growth in the next 3-10 years (maybe 100% or more), then talk to Axis about our exceptional investment opportunities in the UK and the USA.

Next steps for success

Call our portfolio managers, David Ball, Russell Bonner, or Zoe Bryant today, on +44(0)1273 447300 or email the team directly:

David: david@axiscontact.com

Russell: russell@axiscontact.com

Zoe: zoe@axiscontact.com

Live with abundance,

Rod Thomas, FCA

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